Investment Turnover (As Used in Determining the Return on Investment)

question 81

True/False

Investment turnover (as used in determining the return on investment) focuses on the rate of profit earned on each sales dollar.

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Definitions:

Financial Assets

Assets that derive value from a contractual claim, such as bank deposits, stocks, bonds, and derivatives.

Real Asset

Physical or tangible assets such as real estate, commodities, and natural resources that have intrinsic value.

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period of time at a fixed interest rate.

Stocks

Shares of ownership in a company, representing a claim on the company's assets and profits.